Ratescut by 1% or 100 basis points

Westpac saying they going to pass on 80 points of the cut other thieves yet to announce their intentions

None of them will pass on 100% of the 1% cut

Global credit crisis, why ? bankers greed, unrealistic and unsustainable commissions and bonus to the financial wizards who thought up the shakey credit schemes so they could lend money to people who couldn't afford it.

Why are the tax payers forking out to bail these smoke and mirror merchants with no accountability for their actions and yet Govts wont support local manufacturing and companies who actually employ people and make money for the country.

Guillable politicians and their economic advisors have a lot to answer for in their handling of the economy in the last 20 years.

Ah................just as I thought, bank shares up 3 to 4% in late trading today!

Roger

I think it is great news, whether they pass on .25/.5/ or the full 1%, hopefully it will start to stimulate the economy, especially in the business sector. All we hear of late is doom and gloom, finally something positive. I run my own business as a finance broker and this year has been horrid. I just received my equipment rates from Westpac and for the first time in a while I am seeing rates in the '8's.

Regards

Stevo

Dont think its going to stimulate much,just a panic by the RBA.
With all the hype in the media about a world recession that may or may not happen,i wouldnt think to many people or businesses are going to race out suddenly borrow heaps of money.(sorry stevo)

I have my own business,& have noticed a definite slowdown.:(

In the short term,i recon most people will play the waiting game,& see what happens.

People in serious debt,and not much positive cashflow have every reason to be worried.

As said,at least its something positive,the media seem to love hyping on about all the negative stuff.

Yeah but tomorrow when the banks don't offer the full 1% cut to people then the news will be negative. And it is negative for us savers :wasntme: Cause no matter what we will get the full 1% cut.

1% is RBA saying......We are on the ball and know that people have slowed down on borrowing so we want to get it back to where people can see value out of credit.

This doesnt mean bad credit, it means business borrowing etc.

Im in the midst of organising a type of loan for some machines at the moment and Im worried that our commitee is going to knock the loan because of this hype by the media.

I'd be happy to get a loan at the moment due to it turning to a borrowers market so to speak.

To keep it all rolling the rates will keep going down until they hit around the 5% mark (where it is no longer prifitable to loan money) and they will bend over backward for a secure loan (e.g. full doc type loan).

Ive been doing a bit of research into investment property etc as well as I see an oppertunity here to take some money from the people who pay too much for things and buy a rental so that some one can keep their SS comondoor and plasma TV.

Im happy with the Landy and the 84cm old style telly and my 11 square Ex housing commision house with a reasonable mortgage :D

The only problem will be when the dumb people decide to keep the economy slow because they saw it on ACA that if they borrow to buy that nice house around the corner they are going to die a terrible death for light pocket/wallet syndrome.

The trick is to not borrow more than you can pay back taking in account life changes over the years and this is what some banks over in the states the most didnt take into account and just lent money to whom ever asked until all they could do was to take a US$486,000,000 pay out before closing the doors.

I think it is more terrorism by stupidity that the yanks have done to them selves that we will all have to pay for in the end but there isnt any need to panic, that is what the RBA is trying to tell us.

They are on top of it.

Plenty of cheap properties going in Cranbourne:)

The fundamental problem is that we have a nation of over-valued assets. Just like the US.

If asset values continue to drop, and then we start getting margin calls then there is a chance we could loose a bank or more. It's just ugly.

What narks me is the usual vested interests are now saying BUY BUY BUY. That's how we have got ourselves into this mess.

As to house affordability. 1% interest isn't going to help all that much but a 30-40% reduction in house prices would make a **really** big difference.

Im excited/confused too, i have put a offer in today for a house and land package. Does any body want to rent a house in 8 months time.:twobeers::clap2:

Quote:

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Originally Posted by extreme

Im excited/confused too, i have put a offer in today for a house and land package. Does any body want to rent a house in 8 months time.:twobeers::clap2:

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I hope it was a silly offer! We're no where near the bottom yet...